Reader’s Question:

What is an automotive insurance policy?

Ellenroh

Seattle WA

Automotive insurance policy is a document that contains the details of the insurance coverage you sign up for with a provider. You can find there the amount of insurance coverage you and/or your car are entitled to. You can also find there the different types of coverage you pay for. So basically your policy is a package of different kinds of insurance coverage.

The types and amount of coverage to be included in your automobile insurance policy is not solely based in your decision. We can consider the state law as the major deciding factor when it comes to your car insurance because, in the first place, they are the one who make it a requirement. Driving without one makes you law breaker. The 2 types of coverage required by law are bodily injury and property damage liabilities coverage. The state of Nevada’s minimum required coverage is 15/30/10. This means you need to get the following amount of coverage:

$15,000 of bodily injury liability for 1 person
$30,000 bodily injury liability for all people, and
$10,000 property damage liability.

If you want to increase the coverage amount of your automobile insurance policy, then it will be already your decision. After the state’s required basic coverage is fulfilled, you can now decide what to add – amount of coverage and or other types of coverage. It is advised that you examine carefully what other coverage you want to add, how much you want to add. Then, cross check them with your budget. Can your budget still handle the additional coverage you like to be included in your policy? If yes, then good. If no, then maybe you can adjust the coverage amount or remove some that are not really a priority.

If your car is purchased via loan from a financial institution, then they can also be part of deciding what coverage should be in your automobile insurance policy. They would usually require collision and comprehensive coverage. Collision covers the repair cost if you are at fault. Comprehensive will cover the replacement cost if your car get stolen or become a total wreck. Banks would require this as to protect the money they invested in your car, which has not yet been repaid.

Reader’s Question:

I’m a new driver. I’d like to know the basic things that I need to know about automotive insurance and how I can get it for a cheap price. Thanks a lot!

Rebecca

New Orleans, LA

Hello Rebecca! Here are important tips that I can give about automotive insurance for a new driver like you and some things that can help you get cheap automotive insurance:

• If you are planning to get your own automotive insurance with just a learner’s permit that’s not possible if I am not mistaken. You must be licensed driver before you can get your own automotive insurance.
• It would be better to be added under your parent’s automotive policy for now, to save on your insurance premiums. Getting your own insurance policy is expensive.
• If you’re decided to get you own insurance policy and you are allowed to get it, make sure you know the insurance coverage that you need. For one, know the required auto insurance limits in Louisiana.
• It can help you get lower insurance rates if the car you will be using is inexpensive.
• If you get a defensive driving class it’s possible that you can get lower automotive insurance rates for that.
• If you are a student, a good student discount is possible if you can get an average of 2.0 or better. That would also lower your automotive insurance rates.

For more information about getting cheap automotive insurance, you can also ask your insurance agent.

Reader’s Question:

I just got a new car. I loaned some money from the bank to purchase my first car. I don’t know a lot of stuff about car insurance. I got one simple question now – why should I buy automotive insurance?

Carmine

Chicago, IL

Congratulations on your new car!

Since you’ve mentioned that you’ve borrowed some money from the bank just to buy your car then your question is very timely..

Let’s just take this scenario as an example. Let’s say you borrowed $20,000 from the bank to purchase your car. Given the situation that you are driving without car insurance so let’s say while driving you’ve met an accident and it was your fault. With no car insurance to pay for the damages to the other party involved and no money to finance the repair of your car, who would you turn to? I doubt if the bank will ever lend you some money. If you have automotive insurance, then you don’t have to worry about this anymore.

Moreover, automotive insurance also gives you the protection not only from accident with people who have car insurance but most especially to people who do not have car insurance policy. The road is never safe with uninsured motorists, so you need to be ready at all times.

In addition, getting automotive insurance protects your from financial burden that might result when you get involved in a car accident. Depending on your limits, there is a certain amount that your car insurance company will pay when you are in that situation. With no car insurance, you will have to pay everything from your own pockets.

Go find a vehicle insurance now to be able to drive around feeling more secured. Enjoy driving your first car!

Reader’s Question:

I need automotive insurance quotes for my new car. Where do I find them?

Suzy

Newark, NJ

Getting hold of automotive insurance quotes is quite tedious, especially if you want to get a quote from each insurance company in your state. But if you have enough time and money, you can do away with this task. All you need to do is to contact an automotive insurance broker, and he will surely do the hard work for you. Auto insurance brokers are connected to a lot of insurance companies–that’s why it’s easy for them to give options as to which company would best suit your needs. Just give them your preferred automotive insurance coverage (have them discuss this topic to you in case you’re not familiar with coverage) and your budget, and they will be the ones to look for the best automotive insurance policy for you.

However, if you’re not satisfied with what the broker has offered, you can always do the search yourself. You can try checking the internet to see which local companies give the best rate. Almost all automotive insurance companies have their own websites, so it should be easy for you to get a quote from them. From their Web sites, you should also be able to see what discounts or promos they are offering at the moment. See which one could offer you the best package to make sure that you end up with a policy that has the best price and coverage that you need.